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3 1 . 3 Franchise Agreement Libby - Broadway Drive - In , Inc. ( Libby ) , is a corporation licensed to operate a

31.3 Franchise Agreement Libby-Broadway Drive-In, Inc. (Libby), is a corporation licensed to
operate a McDonald's fast-food franchise restaurant by the McDonald's System, Inc.
(McDonald's). Libby was granted a license to operate a McDonald's in Cleveland, Ohio, and
was granted an exclusive territory in which McDonald's could not grant another franchise. The
area was described as "bound on the north by the south side of Miles Avenue, on the west and
south side by Turney Road, on the east by Warrensville Center Road." McDonald's granted a
franchise to another franchisee to operate a McDonald's restaurant on the west side of Turney
Road. Libby sued McDonald's, alleging a breach of the franchise agreement. Is McDonald's
liable? Libby-Broadway Drive-In, Inc. v. McDonald's System, Inc. ,72 III.App.3d 806,391
N.E.2d 1, Web 1979 III.ApLexis 2698(Appellate Court of Illinois)
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